Although renting a house, a room or something similar is advantageous it can become a pain in the neck for both, landlord and tenant.

Failing to pay the corresponding monthly fees and tariff rise are some of the problems that both parties must face. For this reason, it is important to lay the cards on the table through a contract with clear guidelines.

Lawyer Gonzalo Fajardo Lee recommends including all the details established in the Law of Urban Rentals to play it safe. “The tenant has rights according to the law, but there are obligations that must be complied too”.

These are some of the most important points that must be included in the document:

  • Name, age, marital status of tenant and landlord.
  • Registration of the property in the National Register.
  • Whether it is a residential property or not.
  • Monthly rental fee and payment method.
  • If any rise in the fees will be applied.
  • Guarantee deposit.
  • Leasing period.
  • Date of the agreement.

Likewise, the contract must also include information on the services provider (water and electricity) and the currency to pay the rental.

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As per the law, the minimum leasing period is 3 years, only if both parties abide by the guidelines, otherwise the contract can be terminated. For example, in case that the tenant damages the apartment or if the landlord fails to comply with the terms. In this case, the termination of the leasing contract must be notified within a minimum period of 3 months.

Fajardo recommends landlords to interview the tenant before leasing the apartment or the house because it is important to make sure that the tenant has a clean police record. Besides that, the Law specialist recommends tenants to make sure the house or the apartment is in good condition before going onto the next step.

The guarantee deposit is something that must be included in the document, according to the lawyer. This is a fee which is equivalent to one or two months paid in advance. It is a protection measure implemented by the landlord. This part of the contract protects the property owner against damages or in case of payment delays from the tenant.

Nonetheless, if no damage has been caused by the tenant, the property owner must refund the money.

“What really matters is that both sides feel comfortable with any leasing process” – he added.

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